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                                                                   Exhibit 10.21

                          INVESTMENT SERVICES AGREEMENT

     This INVESTMENT SERVICES AGREEMENT (the "Agreement") is made as of the 3rd
day of April, by and between RAM REINSURANCE COMPANY LTD, a Bermuda insurance
company (the "Client"), and MBIA CAPITAL MANAGEMENT CORP., a Delaware
corporation (the "Advisor") and shall become effective on May 1, 2003 (the
"Effective Date").

                                    RECITALS

     WHEREAS, Client seeks investment advisory services in connection with
certain assets owned by it; and

     WHEREAS, Advisor is in the business of providing investment advisory
services; and

     WHEREAS, Client desires to retain Advisor to render advice and services to
Client pursuant to the terms and conditions of this Agreement and Advisor is
willing to furnish such advice and services.

     NOW THEREFORE, in consideration of the covenants and the mutual promises
hereinafter set forth, the parties hereto mutually agree as follows:

     1.   Authority of the Advisor. (a) Advisor shall have full power to manage
          and direct the investments of and for Client's account (the
          "Account"), without prior consultation with Client, subject, however,
          to the limitations referred to in clause (b) of this paragraph 1 and
          paragraph 5 hereof. This discretionary authority makes the Advisor
          agent and attorney-in-fact with full power and authority on behalf of
          the Account (i) to buy, sell, exchange, convert and otherwise trade in
          any and all stocks, bonds and other securities and investments as the
          Advisor may select; and (ii) to establish and deal through accounts
          with one or more securities brokerage firms, dealers or banks as
          Advisor may select; provided, however, that none of such firms,
          dealers or banks shall be a person or entity that controls, or is
          controlled by, or is under common control with, Advisor. This
          discretionary authority shall remain in full force and effect for the
          duration of this Agreement or until the Advisor receives written
          notice from Client of its termination in accordance with the terms of
          this Agreement. Advisor will not be responsible for giving client
          investment advice or taking any other action with respect to any
          assets of Client not included in the Account.

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     (b)  Notwithstanding any other provision of this Agreement, it is
          understood and acknowledged by the parties hereto that Client shall at
          all times have ultimate control of and responsibility with respect to
          the functions which Client is delegating to Advisor pursuant to the
          terms of this Agreement. In furtherance of the foregoing, Advisor
          shall follow the instructions of Client's Chief Executive Officer.
          Chief Financial Officer or Chief Underwriting Officer in connection
          with the management and investment of Account.

     2.   Custody of Assets. Client has appointed Fleet National Bank and
          Deutsche Bank Trust Company Americas, as its custodians (the
          "Custodians"). The Custodians will take and have possession of the
          assets of the Account. Advisor shall not act as custodian for Client's
          Account or take or have possession of any of the assets thereof, but
          may issue instructions to the Custodian of such assets as required in
          connection with the settlement of transactions effected by Advisor
          hereunder. Accounts and records maintained by Advisor in connection
          with this Agreement shall be the property of the Client.
          Notwithstanding the foregoing, or any other provisions of this
          Agreement to the contrary, Client and Advisor acknowledge and agree
          that Advisor shall at all times own and have custody of its own
          general corporate accounts and records. Client shall pay all fees of
          Custodians.

     3.   Brokerage. To the extent permitted in paragraph 1 of this Agreement,
          Advisor may place orders for the execution of transactions for the
          Account with or through such brokers, dealers, or banks as Advisor may
          select and, complying with Section 28(e) of the Securities Exchange
          Act of 1934, may select brokers-dealers charging a commission in
          excess of the commission another broker-dealer would have charged. The
          Advisor and other clients advised by the Advisor may benefit from any
          information received from broker-dealers selected in connection with
          Client's Account. Advisor may (but is not obligated to) purchase or
          sell the same securities for several clients at approximately the same
          time and combine or batch such orders. This may result in differences
          in prices and commissions or other transaction costs from those that
          might have been obtained had such orders been placed independently.

     4.   Administrative Services. The Client hereby engages the Advisor to
          provide those administrative and securities management services
          described in Exhibit A attached hereto.

     5.   Legal Proceedings. Advisor will not advise or act for Client in any
          legal proceedings, including bankruptcies or class actions, involving
          securities


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          held in the Account or issuers of those securities. Advisor will
          provide Client with notice of the bankruptcy of such issuer and of any
          class action in which Client as owner of a security or investment held
          in the Account would be eligible to participate as a plaintiff.

     6.   Risk. Advisor cannot guarantee the future performance of the Account,
          promise any specific level of performance or promise that its
          investment decisions, strategies or overall management of the Account
          will be successful. The investment decisions Advisor will make for
          Client are subject to various market, currency, economic, political
          and business risks, and will not necessarily be profitable.

     7.   Investment Manager Independent. For all purposes of this Agreement,
          the Advisor shall be deemed to be an independent contractor and shall
          have no authority to act for, bind or represent the Client or the
          Client's shareholders in any way, except as described herein, and
          shall not otherwise be deemed to be an agent of the Client. Nothing
          contained herein shall create or constitute the Advisor and the Client
          as a member of any partnership, joint venture, association, syndicate,
          unincorporated business or other separate entity, nor shall anything
          contained herein be deemed to confer on any of them any express,
          implied, or apparent authority to incur any obligation or liability on
          behalf of any other person.

     8.   Sub-Advisors and Consultants. Advisor may, at its own expense, employ
          other persons to furnish to Advisor statistical and other factual
          information, advice regarding economic factors and trends, information
          with respect to technical and scientific developments, and such other
          information, advice and assistance as Advisor may desire; provided,
          however, that such sub-advisors and consultants shall not have
          authority to make investment decisions for Client's Account.

     9.   Investment Objectives and Guidelines. Client has provided Advisor with
          a written Statement of Investment Guidelines (the "Guidelines") in the
          form attached hereto as Exhibit B and incorporated herein by
          reference. Advisor agrees to at all times be in compliance with the
          Guidelines when making investments for Client's Account. Client shall
          give Advisor prompt written notice of any investments made for
          Client's Account which Client believes to have been made outside the
          Guidelines. Client may change or modify the Guidelines from time to
          time by providing the Advisor reasonable advance written notice of
          such change or modification provided, that Client may not amend the
          Guidelines to impose additional monitoring, reporting, or other
          material obligations on the Advisor without the Advisor's written
          consent. Neither Advisor's acceptance of the


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          Guidelines, nor any other provision of this Agreement shall be
          considered a guaranty that any specific investment performance result
          will be achieved. In the event of an amendment to the Guidelines, the
          parties shall mutually agree to an appropriate fee schedule for any
          additional asset class not contemplated hereunder, and if the parties
          cannot mutually agree in good faith to an appropriate fee schedule
          within 10 days of the receipt of notice by the Advisor, Client shall
          have the right to select another investment manager for the applicable
          portion of the Account, provided however, that in such event the
          Client shall provide the Advisor with written notice of the identity
          of such other investment manager.

     10.  Allocation of Charges and Expenses, (a) Advisor shall furnish at its
          own expense executive, supervisory and other personnel services,
          office space, equipment, utilities and telephone services in
          connection with supplying the investment management, advisory,
          statistical, analytical and research services contemplated by this
          Agreement.

     (b)  Custodian fees, transfer agent fees and brokerage costs, fees and
          commissions will be charged to Client's Account.

     (c)  For all reasonable expenses not otherwise covered in subsections (a)
          and (b) above, it is understood that Client will pay or reimburse
          Advisor for such expenses, including, without limitation, governmental
          fees, interest charges, taxes, fees and expenses of independent
          auditors, legal fees and other expenses connected with the execution
          of security transactions or the purchase or sale of any assets in the
          Account or the performance by Advisor of any other duties under this
          Agreement or any actions taken by Advisor at the request of Client.
          Except for taxes, governmental fees and any other expenses outside of
          Advisor's control, Advisor will notify Client not less than five (5)
          business days prior to incurring any individual expense under this
          subsection (c) and Client shall have five (5) business days from
          receipt of such notice within which to notify Advisor of its
          disapproval of any such expense. Failure of Client to so notify
          Advisor of its disapproval within five (5) business days shall be
          deemed Client's approval of such expense.

     (d)  Advisor shall provide Client, no later than ten (10) business days
          following the end of each calendar month, with a (i) summary of the
          investment transactions and (ii) all monthly reports listed on Exhibit
          A attached hereto for that month.

     (e)  Advisor shall provide Client, quarterly in arrears, with a statement
          of any fees and expenses chargeable to Client pursuant to subsections
          (b) and (c)


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          above. Any undisputed amounts shall be paid by Client within fifteen
          (15) days of receipt of said statement.

     11.  Compensation of Advisor. The compensation of Advisor for its services
          under this Agreement shall be an annual fee of 20 basis points,
          payable quarterly in arrears based on the average market value of the
          assets under management for such quarter.

     12.  Valuation. In computing the market value of any security held in the
          custody account:

     (a)  Each security listed on any national securities exchange, for which
          recent market quotations are readily available, shall be valued at the
          last reported sale price on the principal exchange on which such
          security is traded, or, if there has been no recently reported sale,
          at the last reported bid price;

     (b)  Unlisted securities shall be valued at the then current bid price, if
          market quotations are readily available;

     (c)  Any other security or asset shall be valued in a manner determined in
          good faith by Advisor to reflect its fair market value and such
          valuation shall be determinative.

     13.  Records. Advisor shall maintain accurate and detailed records of all
          transactions in connection with the Account, which shall be subject to
          inspection by the Client upon reasonable notice during Advisor's
          regular business hours. It is understood and acknowledged that such
          records are the property of the Client and shall be returned to the
          Client upon termination of this Agreement. Notwithstanding the
          foregoing, however, it is understood that the Advisor is permitted to
          disclose information contained in such records pursuant to the
          requirements of applicable law or of any banking, insurance or
          securities regulatory agency. Moreover, Advisor will be permitted to
          keep and maintain one copy of such record. On request, representatives
          of Advisor shall meet with the Client's officers and directors and the
          officers and directors of the Client's parent company to discuss
          investment performance and other matters relating to Advisor's
          obligations under this Agreement.

     14.  Duration and Termination. (a) Subject to the provisions of paragraph
          13 hereof, this Agreement shall commence as of the Effective Date and
          shall continue until terminated (i) by mutual consent of Advisor and
          Client or (ii) as hereinafter provided. Fees will be prorated to the
          date of


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          termination and any unearned portion of repaid fees will be refunded
          to Client.

     (b)  Either party may terminate this Agreement without cause upon at least
          thirty (30) days prior written notice.

     (c)  At its discretion, Client may immediately terminate this Agreement by
          written notice to Advisor upon the occurrence of any one of the
          following events:

     (i)  The insolvency of Advisor, the inability of Advisor to pay debts as
          they mature, the making of an assignment by Advisor for the benefit of
          creditors, the dissolution of Advisor, the appointment of a receiver
          or liquidator for Advisor or for a substantial part of Advisor's
          property, or the institution of bankruptcy, reorganization,
          arrangement, insolvency or similar proceedings by or against Advisor
          under the laws of any jurisdiction; or

     (ii) The default under or any violation of the terms of this Agreement by
          Advisor which is not cured by Advisor within fifteen (15) days after
          receipt by Advisor of notice of such default from Client of the
          failure of Advisor to perform satisfactorily its duties as set forth
          in this Agreement.

     (d)  At its discretion, Advisor may immediately terminate this Agreement by
          written notice to Client upon the occurrence of any one of the
          following events:

     (i)  The insolvency of Client, the inability of Client to pay debts as they
          mature, the making of an assignment by Client for the benefit of
          creditors or the dissolution of Client, the appointment of a receiver
          or liquidator for Client or for a substantial part of Client's
          property, or the institution of bankruptcy, reorganization,
          arrangement, insolvency or similar proceedings by or against Client
          under the laws of any jurisdiction;

     (ii) The default under or any violation of the terms of this Agreement by
          Client which is not cured by Client within fifteen (15) days after
          receipt by Client of notice of such default from Advisor of the
          failure of Client to perform satisfactorily its duties as set forth in
          this Agreement.

     (e)  Upon termination of this Agreement, if Client so elects and for a
          period not exceeding the earlier of two (2) months or the date on
          which Client appoints a successor to Advisor, Advisor shall be
          obligated to perform those investment services which are necessary to
          ensure the proper management of Client's Account. Termination of this
          Agreement shall


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          not relieve either party of liability for the performance of
          obligations imposed upon such party during the effective period of
          this Agreement which have not been performed at the time of
          termination thereof. It is specifically agreed to and acknowledged
          that Advisor shall be entitled to fees referred to in paragraph 11 for
          services rendered pursuant to this subparagraph (e).

     15.  Non-Exclusive Contract. The services of the Advisor to Client are not
          to be deemed to be exclusive. Advisor is free to render service to
          others. Client agrees that Advisor may give advice and take action
          with respect to any of its other clients which may differ from advice
          given or the timing or nature of action taken with respect to Client's
          Account. Nothing in this Agreement shall be deemed to impose upon the
          Advisor any obligation to purchase or sell or to recommend for
          purchase or sale by or for Client any security or other property which
          Advisor, its officers, employees or affiliates may purchase or sell
          for their own accounts or which the Advisor may purchase or sell for
          the account of any other client. Client recognizes that transactions
          in a specific security may not be accomplished for all or any other
          clients at the same time or at the same price.

     16.  Representations. (a) The Advisor represents and warrants that it is
          registered as an investment advisor with the Securities and Exchange
          Commission pursuant to the Investment Advisers Act of 1940 as amended.

     (b)  Advisor represents and warrants that this Agreement has been duly
          authorized in accordance with Advisor's governing documents and when
          executed and delivered will be binding upon Advisor in accordance with
          its terms.

     (c)  Client represents and warrants that this Agreement has been duly
          authorized by Client's Board of Directors in accordance with Client's
          governing documents and when executed and delivered will be binding
          upon Client in accordance with its terms.

     (d)  Client represents and warrants that it has received a copy of
          Advisor's Form ADV Part II as required by Rule 204-3 under the
          Investment Advisers Act of 1940 at least 48 hours prior to the date of
          execution of this Agreement.

     17.  Applicable Laws. Advisor shall comply with all securities laws and
          other laws applicable to investment managers, including, without
          limitation, the Investment Advisers Act of 1940, as amended. Advisor
          shall comply with the guidelines in providing its services hereunder,
          and, except for


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          monitoring compliance with the provisions of law referred to in the
          Guidelines, shall have no independent duty or responsibility to assure
          that investments permitted by Client's Guidelines qualify as permitted
          investments under applicable insurance laws.

     18.  Voting Rights. Decisions on voting of proxies will be made by Client.

     19.  Liability of Advisor. In providing Client with investment advice and
          other services as herein provided, neither Advisor nor any officer,
          director, employee or agent thereof shall be held liable to Client,
          its creditors or its stockholder(s) for errors of judgment or any
          losses suffered by any of them related to this Agreement and the
          transactions contemplated hereby, provided such losses did not arise
          out of Advisor's action or inaction constituting willful malfeasance,
          bad faith or gross negligence in the performance of its duties or
          reckless disregard of its obligations and duties under the terms of
          this Agreement. It is further understood and agreed that Advisor may
          rely upon information furnished to it reasonably believed to be
          accurate and reliable and upon any instructions of Client. Nothing
          herein shall constitute a waiver or limitation of any rights which the
          Client may have under any federal securities laws.

     20.  Indemnification. Client shall indemnify and hold harmless Advisor and
          its shareholders, employees, agents and affiliates from and against
          any losses (including reasonable attorney's fees) arising out of or in
          connection with Advisor's entry into this Agreement or any act or
          inaction (or any alleged act or inaction) on behalf of Client
          hereunder, other than acts or failures to act that constitutes willful
          misfeasance, bad faith or gross negligence in the performance of
          Advisor's duties or reckless disregard of its obligations and duties
          under the terms of this Agreement.

     21.  Confidential Relationship. Each of the Client and the Advisor agrees
          that the terms and conditions of this Agreement, all information and
          advice furnished by either party under this Agreement and any records
          generated by this Agreement (collectively, the ("Information") are
          confidential and agrees to: (i) hold and treat the Information in
          strict confidence, (ii) take all reasonable measures to keep the
          Information secret and confidential, and (iii) disclose the
          Information only as required by law or applicable regulatory
          requirement or stock exchange rule. Each party under this Agreement
          will inform its respective officers, directors, employees, legal
          counsel and auditors that the Information is confidential and direct
          them to keep it confidential.


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     22.  Notices. All notices and other communications hereunder shall be in
          writing and shall be delivered by hand, telecopier, or mailed by
          registered or certified mail (return receipt requested) to the parties
          at the following addresses and shall be deemed given on the date on
          which such notice is received:

     To Client at:        RAM Renaissance Company Ltd.
                          RAM Re House
                          46 Reid Street
                          Hamilton HM12, Bermuda
                          Attention: Carolyn Thoms
                                     Chief Financial Officer

     Or by telecopier at: 441 -296-6509

     To Advisor at:       MBIA Capital Management Corp.
                          113 King Street
                          Armonk, NY 10504
                          Attention: Clifford D. Corso
                                     President

     Or by telecopier at: 914-765-3375

Either party may change its address or telecopier number for purposes of this
paragraph by giving the other party written notice of the new address or
telecopier number in the manner set forth below.

     23.  Waiver. Waiver by either party of any obligation of the other party
          does not constitute a waiver of any further or other obligation of the
          other party.

     24.  Amendment. This Agreement may be modified or amended only by an
          instrument in writing signed by duly authorized representatives of
          both Advisor and Client.

     25.  Agreement not Assignable. This Agreement is not assignable by either
          Client or Advisor.

     26.  Cumulative. All rights, powers and privileges conferred hereunder upon
          the parties shall be cumulative and shall not restrict those given by
          law.

     27.  Counterparts. This Agreement may be executed in counterparts, each of
          which so executed shall be deemed to be an original and such
          counterparts together shall constitute but one and the same contract,
          which shall be sufficiently evidenced by any such original
          counterpart.


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     28.  Construction; Governing Law. The captions used in this Agreement are
          for convenience only, and shall not affect the construction or
          interpretation of any of its provisions. Each of the provisions of
          this Agreement is severable, and invalidity or inapplicability of one
          or more provisions, in whole or in part, shall not affect any other
          provision. This Agreement shall be construed in accordance with the
          laws of the State of New York, without giving effect to the provision
          thereof relating to conflicts of law and is subject to the provisions
          of the Investment Advisers Act of 1940, as amended, and the rules and
          regulations of the Securities and Exchange Commission.

     29.  Dispute Resolution. Any disputes arising under this Agreement shall be
          settled by arbitration in New York City in accordance with the
          American Arbitration Association rules then in effect, any award
          rendered thereon shall be enforceable in any court of competent
          jurisdiction. The parties each irrevocably waive, to the fullest
          extent permitted by law, any objection which they may now or hereafter
          have to the laying of the venue of any such proceeding brought in any
          such court and any claim that any such proceeding brought in such
          court has been brought in an inconvenient forum. The parties each
          agree that final judgement in any such suit, action or proceeding
          brought in such a court shall be conclusive and binding on it and may
          be enforced in any court to the jurisdiction of which it is subject by
          a suit upon such judgment.

     30.  Entirety of Agreement. This Agreement contains the entire agreement
          between the parties with respect to the subject matter hereof and
          supersedes and cancels any prior understandings and agreements between
          the parties.


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     IN WITNESS WHEREOF, the parties have caused the signatures of their duly
authorized offices to be hereto affixed.


By: /s/                                 By: /s/
    ---------------------------------       ------------------------------------
Title: Chief Financial Officer          Title: President
               "Client"                                 "Advisor"


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                                    EXHIBIT A

                             ADMINISTRATIVE SERVICES

Advisor will provide the following securities support functions:

-    Settlement/Custody Control

     Daily coordination of any securities purchased or sold with investment
     manager, brokers and clearance bank. Confirmation of funds movement upon
     receipt/delivery of securities. Reconciliation of asset position between
     custody bank and investment operations.

-    Transaction Processing

     Daily recording of individual security transactions on trade date.

-    Income Collection

     Daily collection and recording principal (maturity/redemption) and interest
     payments. Follow up on overdue payments.

-    Bank Reconciliation

     Monthly reconciliation of all cash transactions in demand deposit accounts.

-    Market Valuation of Assets

     Assets priced monthly by an outside service.

-    Investment Accounting Staff Support

     Staff support will be provided to assist the Client in responding to audit,
     tax or other regulatory interrogatories related to investment transactions
     as reported.

Independent administrative services which are not provided by Advisor under this
Agreement include:

     --   Custody services.

     --   Outside audit services.

The following reports will be provided to the Client and will include
transaction reports and investment management reports prepared monthly or
quarterly, as the case may be:


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(a)  Transaction Reporting:

     (i)  Monthly detail reports on all transactions including an Income Earned
          Report, Stat Transaction Report, Stat Valuation Report, a report
          detailing cash reconciliations with custodians and a report detailing
          purchases and sales.

     (ii) Transactional information on investments, as needed, to support tax
          return preparation.

(b)  Portfolio Review:

     Monthly summary and detail on the Client's holdings will be provided. This
     report will include market values, overall quality ratings, portfolio yield
     and a summary review of market conditions and portfolio strategy. The
     Client's holdings will be reported separately for each Regulation 114 trust
     account and each uncollateralized account, and for all accounts in the
     aggregate.

(c)  Performance Reporting:

     Quarterly performance results on both yields on new commitments and total
     return for the portfolio will be provided. Performance will be measured
     against agreed upon indices.


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<PAGE>

                                   EXHIBIT B

                          RAM REINSURANCE COMPANY LTD.
                STATEMENT OF INVESTMENT OBJECTIVES & GUIDELINES


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